NEW YORK — A federal appeals court ordered a new trial Tuesday for a former securities trader in Connecticut who was sentenced to two years in prison for allegedly defrauding the government bailout program.
The 2nd U.S. Circuit Court of Appeals in Manhattan reversed Jesse Litvak’s conviction on charges he defrauded the United States by making false statements, and it vacated his conviction on securities fraud charges and ordered a new trial on those counts.
U.S. Attorney Deirdre M. Daly, based in New Haven, Connecticut, said in a statement that the government would proceed to retry Litvak on securities fraud charges.
“We are gratified that the panel unanimously upheld the government’s securities fraud theory and found that the jury was justified in concluding that Mr. Litvak’s misstatements were material to investors,” she said.
The appeals court had allowed Litvak to remain free pending appeal because he raised substantial questions of law.